Aim: To observe the effect of Amniotic fluid index (AFI)<5 cms in predicting subsequent fetal outcome in low risk pregnancy with regards to mode of delivery, fetal complications, intrapartum and early neonatal mortality and need for NICU admissions. Method: Oligohydramnios is defined as AFI ≤5 cm. This study consists of an analysis of pregnancy outcome in cases with diagnosis of oligohydramnios (AFI <5) in 42 patients, by ultrasound after 37 completed weeks of gestation and those who fit the inclusion and exclusion criterias. This was a observational study done over a period of 28 months (August 2016 to December 2018). Low risk, at term women with 37 completed weeks of gestation was studied. For all the women, ultrasound examination was done, and AFI was calculated by four quadrant amniotic fluid volume measurement technique. For all women baseline investigations like hemoglobin%, blood group and Rh typing, urine examination, Non-stress test (NST) is done. It was have a regular charting of pulse, BP, weight, pedal edema, daily fetal movement count, fetal heart sound, amniotic fluid index and estimated fetal weight according to the latest sonography. Results: A total of 42 patients were included in the study. Most of the study population was between 20-24 years (61%) of age group, were multigravida (69%) and gestational age was between 37-38 weeks (79%). Fetal movement counting (FMC) was less than 10 in 52%. LSCS (62%) was the most common mode of delivery. Live births seen in 98%. Birth weight was less than 2.5 kg in 67% and APGAR score at 1 minute was less than 7 in 61% of study population. Number of NICU admission was found to be 14.3%. Meconium aspiration syndrome (MAS) was found in 26.2% of study population. Intrauterine growth retardation (IUGR) was found in 31%. Conclusion: We need to increase the awareness about effects of oligohydramnios. Oligohydramnios increases the chances of cesarean delivery and with vaginal delivery strict vigilance in labor is mandatory. So timely detection, early intervention by an obstetrician may help in improving the perinatal outcome.